10 year low for EU Central Bank rates

The EU central bank today confirmed that it was keeping its rates steady at 1.00%. This rate has been in effect since May of this year and continues to provide support for French property prices which remain stable according to the November press release from the FNAIM, the national Federation of estate agents in France. Average property prices rose in October by 0.6% and the overall drop in the average price of French apartments and houses is now reckoned at 5% for the year. With the Eurozone and France both now having exited the recession and showing signs of growth the outlook is positive for rates for mortgages in France and French property prices.Although the news today came as no surprise, it is interesting to see that the general consensus for the way in which the French mortgage market...

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EU inflation and French mortgages

With the news today that inflation has return to the Eurozone, what does this mean for the outlook for interest rates for French mortgages? The increase in consumer prices for the month of November marks the end of a five month cycle of deflation across the European economic area. The 0.6% rise was driven largely by rises in energy prices which are common at this time of year but exacerbated by the returning trend for oil speculation with traders finding it cheaper to store the oil and to take orders for delivery in six months time. This practice serves to drive up the prices but reducing the supply in the face of increasing demand as oil consuming companies look to hedge against rising costs.This increase in inflation will increase pressure of the ECB to raise the rates for French mortgages...

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Outlook good for low mortgage rates in France

With the reaction on the FTSE today to Mervyn King’s announcement that mortgages rates look certain to stay low in the UK despite a coming spike in inflation, the outlook for low mortgage rates in France. Fortis bank announced today that it was selling bonds covered by ECB collateral bring liquidity to the market again. Two other major French banks also announced that they were also using mortgage backed collateral to raise further finance into an increasingly competitive market for mortgages in France. We have noticed several banks dropping the margins over the Euribor for variable rate mortgages in France in the past few months with many lenders now back to margins below 2% having dropped the margins by 20% or more.Low rates and the availability of up 100% finance for French home loans provide...

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French mortgage best buys for mortgages in France

Finding the best buys for mortgages in France can take some time. Is it best to go for a bank near to the location you are buying in or is it better to search for the best buys with a French mortgage broker? The answer probably is a combination and depends partly on the time you have available to commit to finding the best buy and the level of you spoken and written French. The main problem with dealing with local French banks is that the majority are not equipped to deal with an English speaking customer, just as you might say the local branch of Bristol and West does not have multi-lingual speaking customer services to service buyers from France or Russia. By comparison a French mortgage broker with the right connections can provide the services of personal French banker who speaks English...

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ECB keeps rates on hold at 1%

Another month, another hold by the ECB who do not feel that the Economy is in a good enough state for the various stimulus measures to start being withdrawn. he does want EU governments to get their books and order and to plan an exit strategy from the recession. Clearly the noises here are the beginnings of the upturn from where I'm standing. It may take a few more months but the signs are that confidence with blossom in the spring with the majority of the EU economies growing again.It does not seem like the economies will really take off, especially with unemployment still rising and EU unemployment predicted to rise to 10% in 2010. These times will prove a struggle for many but the fact remains that a large percentage of society will pass through this 'economic crisis' without suffering...

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Why buy French property now?

Ok, I know it seems like we might be a bit biased given that we spend our time arranging finance for second homes and investment properties in France but I genuinely think it is a great time to be buying property in France.Let's look at what's going on. ...Interest rates at historic lows, so it won't be getting any cheaper to financeDiscounts available on properties in some areas, good time to buy to maximise returns100% French loans available, no need to worry about strength of Euro for currency exchange.During a long chat with a journalist today, I convinced myself now really is a great time, perhaps another golden time for getting finance in France and snapping up undervalued French assets. One of the main reasons people are put off from going for a property in France is that the Euro is...

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French mortgage comparison tables: Things to look out for.

Using a French mortgage comparison table is a good method for comparing the differences between mortgages in France. A few sites offer such tables but generally these French mortgage comparison tables do not go into much depth, encouraging a click to fill in an application form or prompting a call to the French mortgage broker to clarify the situation. This trend is quite sensible in fact as due to the complexities of the French mortgages on offer make it quite difficult to display all of the salient points, rendering the comparison simply of the latest rates for French mortgages relatively meaningless.For many years French banks have used an introductory rate, generally fixed for 3 months to make an attractive headline number which many buyers in France have been drawn to when browsing French...

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French equity release mortgages in France gaining in popularity

French equity release mortgages are increasingly popular with our clients at Athena Mortgages with many new enquiries coming in daily. The main reason for the interest is of course the exchange rate which has the euro very strong against the pound and a large basket of currencies.Those who bought in the last few years borrowing against equity in their property in the UK or elsewhere to profit from the strength of the pound to purchase a dream or bargain property in France are now reaping the benefiting by releasing that equity in France, converting the funds to Stirling with a profit approaching 25%. Some of our recent clients are using the windfall to pay off a portion of their UK mortgages, fund new ventures or additional properties.Getting an equity release mortgage in France is simple....

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Eurozone expected to exit recession on Nov 13

The EU statistics offices anticipated to announce that the 26 nations that make up the Eurozone will officially exit recession and return to growth. In fact economic confidence in the Eurozone one was at it highest levels for a year in last month due in to increases in factory orders and production.Inflation is trending down with no increases to the ECB benchmark rate anticipated until 2010 when a .25% rise is priced into the markets currently. Of course things can change and new information becomes available all the time. As in the UK, Eurozone home loan lending is up with these mortgage approvals boosting confidence in construction on both sides of the channel.There is still uncertainly in the market which is good news for those looking to negotiate discounts for French properties or borrow...

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French home loans: Finance for US buyers of French property

Every American has a second home in France - Thomas JeffersonThe historical links between America and France are well known, from the Statue of Liberty to the connections of WWII. The fascination of Americans with France is understandable drawing many visitors and prospective homeowners each year. The numbers of American buyers in France has been increasing in recent years but with the current economic conditions and the difference in the exchange rate, enquiries from the U.S. have dropped significantly over the last 18 months. Now that lending conditions in France are better than most developed countries a French home loan is often the best bet for buyers from the United States of America as a way to finance a property in France. Given the strength of the Euro it definitely makes sense to...

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Fastest French Mortgages-How quickly can you get a mortgage in France?

The key to getting a mortgage quickly in France is to build up the required documents to support you French mortgage application. One of the longest delays in processing a mortgage application in France is getting a complete dossier to the bank. An experienced French mortgage broker can help you to organize the information and documents into a format that is acceptable to the majority of French banks.As with everything in life, there are often specific circumstances that lead to a mortgage being required urgently and perhaps not all the documentation is not available immediately. In this case, a good French mortgage broker can significantly increase your chances of securing a mortgage in France quickly by placing your application with a bank that requires less documentation or can proceed...

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Latest rates for fixed and variable rate mortgages in France decrease

The latest news from France is that rates are decreasing due to competition for mortgages between banks. One of the biggest specialist French mortgage lenders has recently dropped its rates by 15%. This 15% rate drop is anticipate to spread through banks that offer mortgages in France and interestingly the drops apply to both the spreads/margins the bank charges above the Euribor* on the loans and the initial rates.For the variable repayment French mortgage, the rate which was previously 2.8% and has now dropped to 2.3% with a margin over the Euribor* of 1.3%. For a five year fixed rate French mortgage the rate was 4.25% with the current rate now standing at 3.95%.These are some of the best rates for mortgages in France currently and also compare very favourably with rates for mortgages in...

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Fast French bank account opening at distance

Choosing a French bank account can be a bit daunting but the general rule is that you definitely get what you pay for. The free bank accounts generally do not offer Internet banking in English or have customer service advisers who speak English. It is definitely worth considering a fee based account which should not be more than €50 per year. This will provide you with a French bank account that offers Internet banking you can understand and bilingual staff which will mean that you will be able to resolve any issues that come up quickly and easily.If you would like to open a French bank account via Athena Mortgages you will simply need to send us a few documents by scan and your French bank account can be open within 24 hours. we require:Signed French bank account application (copy first and...

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How a 100% French Mortgage works

Got an enquiry today from Steven who wanted to know more about how 100% French mortgages works.Steven asked, "Please explain how a 100% mortgage would work,could I buy a property with no money down in France with the a strong chance holiday lets could cover the mortgage,is there a catch,and what would be your fees."Ignoring the obvious element that the loan amount would have to be affordable a 100% French mortgage is catch free. It does what it says on the tin, it's a 100% French home loan that can be used to purchase either an existing second home, buy to let or a French leaseback where the VAT is advanced by the developer. The only properties which are excluded are new build/off plan properties that do not have the 'residence du tourisme classification'. However, whilst 100% of the purchase...

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French mortgage rates in 2010

Predicting interest rates and French mortgage rates is a game that can win you millions if you work in the city but at the cold hard face of decisions about which French mortgage to take out, looking at trends may save you some money.The pound strengthened today on the back of the Mervyn King's speech last night in Edinburgh to €1.11 indicating that a rise in UK interest rates is not as a far away as was previously thought. 'I do not know for how long interest rates will remain so low but at some point they will return to more normal levels' King said 'And it would be wise to take this into account in your financial planning.'Indeed, interest rate futures in the States are pointing to a rise in U.S interest rates within a few months and generally what happens in the U.S first, soon comes to...

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French Mortgage

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FRENCH PROPERTY AND MORTGAGE SUMMARY OCTOBER 2009

French property prices rise by 0.1% during SeptemberPrices now 2.8% higher than six months agoNumber of French mortgage enquiries through Athena up 21% during Q3French mortgage completions at Athena Mortgages up 14% Q3 on Q2London, 19 October 2009 – Similar to the UK, the French residential property market is continuing to show signs of stabilisation. While prices* fell by 1% during Q3, they rose by 0.1% during September, resulting in a total positive return for the period April to October 2009 of 2.8%. Returns for the year to date have now pulled back to a respectable -7.8%.Unlike the UK, however, a history of prudent lending in France (lenders do not allow borrowers’ total outgoings on finance payments to exceed one third of their total gross monthly income) has meant mortgage finance is...

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100% French Mortgage best bet for UK buyers until 2014 -Report from Ernst and Young says pound will stay weak for four years.

A 100% French mortgage seems to be the option of sense for the next four years due to the weakness of Stirling for UK buyers of French property. The pound has lost more that a quarter of its value against the Euro in the past 2 years and as the value of Stirling continues to fluctuate, parity with the euro cannot be ruled out. So for those looking to buy French investment property of buy a dream home, what does the future hold for Stirling? According to a report by accountants Ernst and Young, the pound is likely to remain weak as international investors decline to invest in the UK in the face of the UK's growing budget deficit. This lack of investment will keep the economy slow and keep interest rates in the UK at the low rates currently being experienced.The news is not all bad, though,...

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Mortgages in France see competiton and innovation

Mortgages in France have not historically been a hot bed of innovation and competition but signs are that the French mortgage market is beginning to catch up with its cousins abroad. Recent reports from French specialists Empruntis reveal that September showed a reduction in the average rates of 0.20% for fixed rates for most durations and a reduction of 0.15% in the rates for variable mortgages indicating strong competition from French banks and French home loan specialists.For mortgages in France for non-residents, we are seeing innovation with a next generation Hybrid mortgage product with rates typically under 3%. This Hybrid mortgage allows you to split your loan into two parts, one on an interest only basis and one on a capital and interest basis. There is a minimum loan amount of €300,000...

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Guide to getting a French mortgage or How much can I borrow in France?

French mortgages are somewhat different from loans/bonds/mortgages in other countries. For a start, in 95% of cases the amount you will be able to borrow from a French bank will be based on an affordability calculation that will be linked to your provable income, whereas in the UK and US it is possible to have "self cert" mortgages where no proof of income is required. In the Anglo Saxon world, with a certain amount of deposit, the future rental income from a buy to let rental property will be sufficient to obtain mortgage finance without reference to income documentation from employment or accounts. That is not to say that French banks do not consider the future rental income from buy to let or investment property, indeed, some banks will take up to 100% of the future rental income from the...

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Live longer and be happier with a mortgage in France

It's official, the France is now sitting pretty at the top of the league for the European quality of life index according to a study from U switch published yesterday. The report paints an idyllic picture for those citizens from the UK who can move to France where they will enjoy lower costs for life's essentials such as food and fuel, early retirement, more holiday, more sunshine, better heath care and a longer life by 2 years. Access to the more relaxed lifestyle available in France is accessible to the Brits who have the highest average salaries in Europe and many more are now enquiring about properties and mortgages in France according leading French brokers.In August and September enquiries for mortgages in France at Athena Mortgages were up, with many enquiries for 100% mortgages. Mortgages...

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Buy a French property with a 100% French Mortgage to hedge against inflation

The French mortgage market in France offers a perfect means of buying French property assets as a hedge against the impending prospect of rising inflation in the years to come. With interest rates as low as they have been since the launch of the Euro and the uncertainty in the French property market offering bargains, now is certainly the time to find out how much you can borrow in France and the French mortgages on offer to you.It does seem as though we are nearing a change after the consumer price indices after the falls in the consumer price indices of the past two years. Gold is at an all time high and is predicted to double again to match the highs of more than $2000 per ounce in the eighties. So with impending rises in interest rates as economies take off, producing higher inflation...

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WORKING TOGETHER

Athena Mortgages is a close knit, multi-lingual team with over 20 years experience in the French property market. We have helped 1000s of clients to find the best available mortgage for their French property. We work closely with many French property developers, who choose us for the clarity and simplicity of our presentation. We continue to search for the best deal for our clients right up to the day of transfer of the property.Nick Leach of Pierre & Vacances: “ Athena Mortgages provide our clients with the optimal mortgage for the purchase, also saving our clients time and money”.We pride ourselves on professional service and dedication...

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WELCOME TO ATHENA MORTGAGES BLOG

Whether you are looking to finance a holiday home, leaseback property or a buy-to-let investment in France, Athena can get you some of the best rates on the market. We negotiate hard for you because of the volume of business we do in France – and you only have to wait seconds for a decision-in-princip...

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